Weekly jobless claims rise unexpectedly

More Americans than expected filed initial jobless claims last week, as job creation remains stubbornly sluggish.

Claims increased 13,000, to 472,000, while forecasters expected a slight drop to about 455,000 from the previous week's seasonally adjusted 457,000, according to Labor Department figures released Thursday.

Job numbers for June are expected Friday morning and could show a bleak economic outlook for the job market as temporary hiring for the census has ended. The key number to watch is private-sector hiring, which according to one private report will have added only 13,000 jobs last month.

The four-week moving average, which smoothes out the volatility of the weekly number and is a better look at the employment picture, increased 3,250, to 466,500, from the previous week's revised average of 463,250, the highest in almost three months.

The Senate failed Wednesday night to pass an extension of unemployment benefits, and more than 2 million Americans are expected to stop receiving weekly checks by July 10.

The House is expected to pass a bill Thursday, but the Senate has adjourned for the July 4 recess and won't take up another measure until mid-month.

About 4.92 million unemployed Americans received extended federal benefits in the week ended June 12, down from 5.3 million. The figures are not seasonally adjusted.

Workers can receive up to 99 weeks of extended benefits in some states. State unemployment compensation runs 26 weeks and federal programs through the 2009 stimulus have been providing the additional weeks of help, especially in states hit by high levels of unemployment.

In the week ended June 19, the number of workers continuing to receive benefits rose 43,000 to a seasonally adjusted 4.62 million.

Economists argue that jobless claims need to drop into the low 400,000s or high 300,000s to reflect stronger job growth in the private sector.